Commission sends Statement of Objections to KKR for providing incorrect or misleading information during merger investigation

The European Commission has informed KKR & Co. Inc. ('KKR') of its preliminary view that the company provided incorrect and/or misleading information during the 2024 Commission's investigation of KKR's acquisition of NetCo, under the EU Merger Regulation ('EUMR').

On 19 April 2024, KKR notified the Commission of a proposed transaction involving the acquisition by KKR of sole control over NetCo. KKR is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. NetCo comprises the primary and backbone fixed-line network business of Telecom Italia S.p.A. ('TIM'), i.e. broadband infrastructure connecting the central office to the street cabinet, as well as FiberCop S.p.A ('FiberCop'). Before the transaction, FiberCop was a joint venture between TIM and KKR that included TIM's secondary fixed-line network, i.e. the broadband infrastructure connecting street cabinets and end users' premises. The transaction brought TIM's primary and secondary networks together under FiberCop and gave KKR sole control over the latter.

During its merger investigation, the Commission examined the impact of the transaction on the market for wholesale broadband access services in Italy. Wholesale broadband access allows telecom operators to use FiberCop's fibre network to provide internet services to their customers. The prices and conditions of that access can therefore affect competition between internet providers and, ultimately, customers' choice and the prices they pay. In particular, the Commission investigated concerns voiced by various third-party operators that, after the transaction, FiberCop could restrict access to passive services (i.e. infrastructure). Given those risks, the Commission raised serious doubts regarding the transaction.